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State of Play’s TL;DR
- Light & Wonder reported modest top-line growth in the second quarter but stronger gains in profit and cash flow as online casinos and gaming operations continued to expand.
- The supplier also reaffirmed its full-year 2026 outlook while signaling a bigger focus on reducing leverage.
Light & Wonder said second-quarter revenue rose 2% year over year to $828 million, while net income increased 26% to $120 million. Consolidated AEBITDA climbed 9% to $383 million, and net cash provided by operating activities more than doubled to $241 million.
CEO Matt Wilson said the quarter showed “continued execution” of the company’s content-focused model, with growth and margin expansion across its businesses.
Gaming revenue increased 5% to $554 million in Q2, helped by an 18% rise in gaming operations revenue to $247 million and a 13% increase in table products revenue to $62 million. Gaming machine sales revenue, however, fell 4% to $184 million.
The online casino segment also grew, with revenue up 14% to $92 million and AEBITDA up 18% to $33 million. Light & Wonder said its platform processed a quarterly record $31.3 billion in wagers.
SciPlay was the weak spot in the report. Revenue in that segment fell 9% to $182 million.
Cash flow improved as Light & Wonder keeps 2026 outlook
The company also said its North American Gaming operations premium installed base increased by 652 units sequentially and by more than 2,550 units from a year earlier. Grover charitable gaming added 277 units sequentially and contributed $45 million in revenue to gaming operations.
Adjusted free cash flow rose 50% to $156 million in the quarter. Light & Wonder returned $134 million to shareholders through repurchases of about 1.6 million CDIs.
At the same time, the company said it plans to slow buybacks and focus more heavily on paying down debt. CFO Oliver Chow said Light & Wonder wants to reduce net debt leverage to below 3.0x in the first half of 2027 as it moves toward an investment-grade leverage profile.
As of June 30, Light & Wonder reported $5.2 billion in debt outstanding and a net debt leverage ratio of 3.4x.
The company maintained its full-year 2026 outlook and said it still expects consolidated AEBITDA growth in the mid- to high-single digits. For the first half of 2026, Light & Wonder reported revenue of $1.62 billion, net income of $172 million, and consolidated AEBITDA of $710 million.
Based on reporting by Business Wire.
